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Global Trade In Agri Food Industry

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Global trade is the international exchange of products and services between different countries or territories. It involves the activities of the government and individuals and is usually formed by exports and imports. For many countries, global trade is a significant share of the gross domestic product (GDP). The importance in economic social and political life has been increasing rapidly in recent years. This increase can be mainly attributed to globalization and multinational corporations. It also follows the trend of development of the global economy. By looking at data provided by the World Trade Organization, it is possible to calculate the percentage of total merchandise increase in world export and import. Table 4.1 shows the results …show more content…
The characteristics of the agri-food industry are to make global trade in this industry a specialty. It will be influenced by various factors like natural resources, population, TNCs and price volatility. Food is a basic need for everyone, and has taken a special role in global …show more content…
China is a big player when it comes to the production of agri-food, but it is also a big country concerning imports. The production level has increased in the last eleven years. Even the total volume of imports and exports in China has plummeted 8% year by year. In the agri-food industry the total amount of import also keeps increasing. It is caused by the high price which in China is higher than in other countries - ranging from 20% to 100%. The higher price in China is reasonable. In production circuits, because the conventional planting mode of small-scale farmers cannot adapt to big-scale mechanized production and raise of labor cost, the product cost keeps increasing. Based on the market economy principle, as populations’ increases, the demand in importing agri-food has become inevitable tendency (Fred Gale et al. 2015).

The RMB join the Special Drawing Rights (SDR). On the one hand, it advances the economic globalization. On the other hand, it can solve issues caused by dollar up value and the fed to raise interest rates. For example, the issue of shortage of foreign exchange reserves in emerging economies. Some trades just have to change into barter trade, after RMB joins the SDR, they can use RMB for global trade. In a long run, this also promotes global trade in the agri-food

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